Scientific Journal of KubSAU

The article investigates a relation between the company`s innovation capacity and its integration strategy. The author considers main elements of innovation capacity: access to new technology, dynamic entrepreneurship, reproducible competitive advantages, supply of complementary goods. Further in the article main forms of corporate integration are being analysed: from zero integration to “mild” integration in the form of entrepreneurial networks and “strong” integration in the form of M&A. The author analyses the effect of different integration forms on the elements of a company`s innovation capacity and makes a conclusion that integration may serve a purpose of increase of innovation capacity by creating a synergistic effect which is shown in increased company`s potential and reduced transaction costs. Stronger integration means stronger synergistic effect and its effects. However, the author shows that “mild” forms of integration through entrepreneurial networks and strategic alliances may be the most prospective for further research because such forms of integration allow to affect all the element of innovation capacity without sufficient costs of implementation of integration strategy